| |
Under the PSFTA, each country shall progressively eliminate its customs duties on originating goods in accordance with Annex 2.3. Tariffs on 98% of Singapore's domestic exports were eliminated upon entry into force of the agreement. Key exports that will benefit include orchids, beer, processed foods, refined oil, chemicals, paints and varnishes, auto parts, engines and electronics.
The following staging categories apply to the elimination of customs duties by each Party pursuant to Article 2.3 (Customs Duties Elimination Schedule):
| (a) |
In staging category A, it shall be eliminated entirely and such goods will be duty-free on the date this Agreement enters into force; |
| (b) |
In staging category B, it shall be eliminated from base rates in five equal annual stages beginning on the date this Agreement enters into force; |
| (c) |
In staging category C, it shall be eliminated from base rates in ten equal annual stages beginning on the date this Agreement enters into force; |
| (d) |
In staging category D, it shall remain at base rates for years one through ten; thereafter, such goods shall be duty-free, effective January 1 of year eleven; and |
| (e) |
In staging category E, it shall remain at base rates. |
Customs duties not higher than those effective April 2005 were approved as a base rate when applying the provisions of this Agreement. After the entry into force of this Agreement, if a Party were to lower customs duties below the approved base rate, the new customs duties shall replace the approved base rate as the new base rate.
|
|